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From Kirsten Bischoff, Opalesque New York and Benedicte Gravrand, Opalesque Geneva:

Opalesque has learned that Houston-based energy firm Centaurus Advisors has alerted investors to changes in the structure of the firm’s Centaurus Energy and Centaurus Energy QP funds, including fee breaks and a new lock-up on current investments that will run from June 1, 2011 to May 31, 2012.

Centaurus, which was founded in 2002 by former Enron trader John D. Arnold has grown to approximately $5bn (as of early 2011 - Source). The firm, which suffered its first down year in 2010 with a near 4% loss has historically been a standout performer, returning more than 300% in 2006 and 30% in 2009.

The firm’s 2010 losses have been attributed widely to a combination of tough markets and new trading limits imposed by the CFTC (which Arnold opposed at a 2009 CFTC meeting saying ""Decreasing the number of large speculators in the market would lead to a market less reflective of fair value in the forward curve and, in the short term, higher energy prices by replacing a speculator willing to short with one that apparently is not." Source).

The investor letter, which Opalesque has seen, informs investors that the firm w......................

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